 "Ikea")
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Global furniture major Ikea is eyeing the next phase of investment in India and is looking to raise funds for it, even as it begins selling through ecommerce channels in North India next month.
The Swedish giant said it was also planning to open small-format stores across Delhi-National Capital Region (NCR) while exploring the possibility of selling through quick commerce (qcom).
The furniture retailer will start online deliveries from its first 180,000 square feet central distribution centre in Gurugram, covering Delhi-NCR and nine satellite cities, including Agra, Prayagraj (Allahabad), Amritsar, Chandigarh, Jaipur, and Lucknow, among others.
“Over 30 per cent of the company’s total sales currently come from the online channel, which continues to grow in double digits,” Bhavana Jaiswal, country ecommerce manager, Ikea India, told Business Standard in an interview earlier this week.
Meanwhile, the small-format stores will be in addition to the two large-format stores planned for the region, as announced earlier by the company’s parent, Ingka Group.
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These stores, coming up in Gurugram and Noida, are being built with an investment of Rs 3,500 crore and Rs 5,500 crore, respectively, and are set to open in 2026 and 2028. This is part of the company’s first round of investment — a government-approved Rs 10,500 crore foreign direct investment proposal in 2013.
“So yes, we are in dialogue (with the government). The investments we committed to are booked up with the two big investments in Noida and Gurugram,” India Chief Executive Officer Susanne Pulverer told PTI.
Talking about qcom, she added, “We don't say ‘never say never’. It is a very exciting space, and we are continuing to explore the possibilities, but for now, our focus will be on getting things right in Delhi.”
“Delhi is the biggest market for us and has immense potential. We are aiming to shorten our timelines and do next-day deliveries in Delhi for all our 7,000 stock keeping units,” Jaiswal added.
According to the company’s internal studies, the organised and customised furniture market in six major metro cities amounts to $9 billion. This move comes at a time when all consumer-facing companies, including fast-moving consumer goods firms, are eyeing a larger premiumisation opportunity in the country.
Announcements made in the recent Budget 2025 are also expected to provide an impetus to consumer spending.
“Ikea India applauds a positive and inclusive Union Budget 2025. We believe many of the initiatives will help fuel the aspirations of many more people, including lower-income groups. The revision of tax slabs empowers the middle class — the heartbeat of our economy — boosting disposable income, acknowledging their invaluable contribution, and fueling socio-economic growth,” said Pulverer, who is also the chief sustainability officer, Ikea India, after the Budget announcements earlier this month.
According to financial data accessed by business intelligence platform Tofler, Ikea India reported a widening of net loss to Rs 1,303 crore in 2023-24 from Rs 1,133 crore in the year-ago period, while its net sales rose 4.7 per cent to Rs 1,805.6 crore from Rs 1,728.3 crore in the year-ago period.
“We are on a path to operational profitability, according to our plans,” Pulverer had told Business Standard in an earlier interaction.
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